what is the bond's YTM?

Q: what is an available-for-sale security?

A: Securities are financial instruments that can be traded easily. The entities use these securities to…

Q: How the bond convexity affects the accuracy of the firs order approximation method? What are the…

A: Convexity is a risk-management technique that may be used to assess and manage a portfolio's…

Q: Define duration (bond)

A: Bond duration: It is defined as the sensitive interest rate to the time of repayment of the…

Q: Describe what is the assumed liability?

A: An assumed liability is an obligation under the terms of the agreement assumed by a party. Insurance…

Q: Using an appropriate diagram, discuss to which extent duration measure of a bond is related to its…

A: Duration and convexity are two tools used to manage the risk exposure of fixed-income investments.…

Q: Define forward contract.

A: It is a form of derivative contract which is used as an agreement

Q: What is a derivative security?

A: Financial Instruments: It represents assets that are traded in the financial markets and are…

Q: Describe a bond and its characteristics.

A: Bond is a long-term debt instrument. A bond may be secured or unsecured. Bonds are issued by…

Q: Define Puttable bond.

A: Puttable bond: A puttable bond is a kind of bond that offers the right to the bond holder, but not…

Q: What is the Security Market Line (SML) ?

A: Answer: A security market line (SML) is a line that representing the relationship between systematic…

Q: What is a bond spread?

A: Answer: The term ‘bond spreads’ or yield spread is the disparity in yield between debt instruments…

Q: How do you calulate breakeven point ?

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: Define Indexed bond.

A: Indexed bond can be defined as a bond in which interest payment are based on some defined price…

Q: What are collaterals?

A: Assets are those resources that have some economic value held by an corporation, individual, or…

Q: What is tip of financ

A: Finance is generally described as managing money, which encompasses actions including such…

Q: What are the benefits of netting?

A: Answer Defination:- Netting is a process by which an exposure or obligation is reduced by combining…

Q: Explain Derivative security?

A: Derivatives security: A derivative security is considered as a financial instrument whose value is…

Q: What is perfect hedge?

A: Hedge: A hedge is referred as an investment to decrease the risk of opposing price movements in an…

Q: Explain Labor and Material Payment Bonds and Completion Bonds?

A: Bonds are defined as units of corporate debts which are issued by the companies & are…

Q: What is collateral? Give an a example.

A: Consumer Loans: This type of loan are user by common people to finance their personal expenditure or…

Q: Explain the term Collateral.

A: Assets refer to those resources which have some economic value held by a corporation, individual or…

Q: What is liability

A: Financial accounting includes recording, collecting, summarizing and interpreting the financial data…

Q: What is the difference between D uration and Convexity of a bond?

A: Duration measures the bond's sensitivity to interest rate changes. Convexity relates to the…

Q: What is the proposal’s internal rate ofreturn?

A: The internal rate of return is a metric used in financial analysis to estimate the profitability of…

Q: What is exchange risk, as distinct from exposure?

A: Foreign exchange risk or foreign exchange exposure refers to the financial risk associated with a…

Q: What is Minimum Subscription?

A: Issuance of stock:It refers to the number of shares that are sold to the stockholders from number of…

Q: State difference between sureties and security?

A: In development contracts, if a worker for hire neglects to play out the works, the business would…

Q: Define Security Market Line (SML

A: When the cost of equity obtained from CAPM model is graphically presented, it is known as Security…

International Bonds

A bond is fixed-income security where a lender comes into a contract with the borrower. The borrower agrees to make payment and interest at a specified date in the future or on maturity period. It is a type of financing that helps to fulfill and meet obligations. Many people invest in bonds because it is a simple form of security.